Morning journal and courier., 1887-09-22
THE WHEELER FAILURE.


 Work Soon-The Identification of the
 Wire Rod Property at the NI1ll-MOre
 About the Joliet FactOry-The Unfa-
 vOrabie Impressions What MT.
 Wheeler Says in Reply-The Assets to
 Pan Out Larger By Far Than Che
 Hundred and Fifty Thousand Dollars
 The Wheeler failure continues the town topic. The New Haven wire mills connec- tion with the misfortunes of Wheeler & O. is feature which has direct personal in- terest to large number of workmen. There were 325 employed at the mill when it shut down and they have since been out of en- ployment. The receiver, Mir. Galpin, was interviewed yesterday on the subject and said he hoped to see the mill running in a very few days, but that was matter de- pendent upon the order of the court; he could not say that all would be employed perhaps only part would be. The decision as to the identity of certain lots of wire at
 the mill will be made very soon by Mir. w. L. Bennett His researches into the wire ! identity question will form the basis of liti- gation on the subject and it may be deter mined, when that question is settled, to start
 up the works for the purpose of working off these lots into merchandise and it may be decided to work the entire force under the trusteeship. The wire mill plant is consid- cred a valuable one and one that might be 1 worked to advantage for the creditors. MT. Wheeler was seen yesterday afternoon and was enquired of as to the stories afoat ! that his concern would pan out but six or seven cents on the dollar. MT. Wheeler characterized such a statement as absurd. The Probate court statement did not show the exact state of the liabilities; how could it !! There were contingent liabilities" and of these some were as good as wheat. Why, at the face value the assets ought to pan out 85 per cent. There was no justice in the hue and cry that everything had gone to the demnition bow | VOWS. With suitable time the true state of things would be made apparent MT. Wheeler said he could not speak farther or more defi- nitely at present. He had no hesitation in stamping the assertions of some as to t'crook- ed operations" as wholly uncalled for and denominated his business transactions as le- gitimate and the outside concerns in other cities as all right, as would be shown later. MT. Wheeler was very busy man and had a dozen demands upon his time, including the vigorous calling of the telephone, and was unable to prolong the interview. He seemed to be as ready and prompt and free as if he were not leading an apparently forlorn hope and as if he were about to bring order out of apparent chaos.
 As hitherto stated, General Merwin while on business trip out West, from which he returns soor, wrote letter to ex-Governor Blgelow, president of the Merchants bank of this city, of which General Merwin is a director, regarding the Joliet branch of E. s. Wheeler &t Go. As stated hitherto, the i'm pressions are not so favorable for the cred- itors since the reception of that letter. Gov ernor Bigelow refuses to make the letter pub- lie, as it is private letter. He denies the statement that General Merwin has been in the West in the interest of the banks of New Haven, which hold, nearly $400, 900 of the Wheeler paper, or that there was any under standing before he left that he was to be ap. pointed trustee. "He was in the West on private business" says the Governor, ''and I sent him word to make inquiries in Joliet about the firm there which is prominent in this failure"
 A bank president. however, says that he has learned from Governor Bigelow that Gen. eral Merwin at Joliet, Ill.,, after considerable difficulty, succeeded in finding an office which was supposed to be 8 branch to that of E. s. Wheeler 6 Go. The office was occupied by but one man, and to question from the investigator if a certain company, supposed to be engaged in the manufacture of barbed wire fence and branch of E. s. Wheeler & Co.,, had an office in the building this single occupant said it had. He also stated that the manufacturing business was not carried on there, but in New Haven. The occupant, being further questioned, admitted that the Joliet company had no directors. "Further inquiry" says the bank president, "convinced General Merwin that MT. Wheeler was the head and front of the Joliet concern He ascertained great deal about the busi- ness methods of this western branch and how notes were issued therefrom. In the first place sheets of notes were forwarded to MT. Wheeler to be issued when occa- sion demanded, and were signed with the technical name of the Joliet company
 IhGaA n 1NonIr tO Joliet and received the signature of the individual who was interviewed by General Merwin, and then the paper took a final trip East for Mr. Wheeler's en- dorsement, when it was presented to the bank for discount. Such notes had the appearance of being doubly secured-by the credit of the western firm, which was supposed to be a large purchaser of E. s. Wheeler & Co.'s goods, and of E. s. Wheeler & Co. In that way the banks, believing the paper was first class, readily discounted it. You can see for yourself how we'll secured the banks were under such circumstances. That is as far as have been able to learn from Governor Big elow about the contents of that letter from General Merwin. It was good deal of surprise"
 The president stated that he did not think the creditors would realize five cents on dollar.
 Continuing he said: s'Here is an illustra- tion of how the banks of this city were de- ceived. At our bank when MT. Wheeler wanted a note discounted he would present note, say for $1, ,546.31, purporting to come from the Joliet house or some other firms he had dealings with. Naturally we supposed it was good business paper and with MT. Wheeler's endorsement on it we supposed it to be perfectly good and legitimate; we did not suppose it to be kite paper. If it had been 0 note of MT. Wheeler's to raise money on we should have declined it as suspicious, even if it had the Joliet endorsement We were deceived. This is the worst failure that has ever occurred in New Haven or in New England, for that matter"
 At meeting of the creditors of F. O. Davenport, importer and dealer in tin plate, sheet iron and metals, in Boston on Thursday, a statement was made of Mir. Davenport's affairs, in which he has unsecured liabilities as maker, drawer, endorser or acceptor of notes, | bills of exchange and checks of E. S. Wheeler 6 Go. amounting to $64 ,200.82. The total | unsecured liabilities are $13S, ,579. 14. The total unencumbered assets are $33, ,s91.77.
 Mr. Wheeler being inquired of yesterday | regarding the statements that the various I factories at Joliet and elsewhere were only I factories on paper to promote his obtaining | brisk discounts indignantly replied:
 "Factories to make business paper the same | as factories to make wall paper for resi- dences? We'll, I indignantly deny any such | derogatory claims and will only say that it is not my time to speak, and the reasons for not speaking further are obvious.
 On the other hand, at some of the banks it s stated that the Wheeler paper that has so ar fallen due here, pans out in very dis l 'ouraging way as regards swelling the assets.
 A Handsome Improvement.
 Charles H. Miller has had his billiard !